Decree No. 44/2025/ND-CP on Management of Labour, Wages, Remuneration and Bonuses in State-Owned Enterprises

Decree No. 44/2025/ND-CP, issued by the Government on 28 February 2025, prescribes management of labour, wages, remuneration and bonuses in state-owned enterprises (SOEs). It applies to enterprises in which the State holds 100% of charter capital and enterprises in which the State holds more than 50% of charter capital or total voting shares as defined in Article 88 of the Enterprise Law. The Decree governs employees working under labour contracts (including certain military and security personnel), executive management (General Director/Director, Deputy Directors, Chief Accountant), members of management boards and supervisory bodies, state capital representatives at enterprises, and related persons and entities. The Decree is issued pursuant to the Government Organization Law, the Labour Code, the Enterprise Law, and the Law on Management and Use of State Capital invested in production and business, and implements ownership supervision by owner-representative agencies and their authorised representatives. Principles establish that labour, wages, remuneration and bonuses must be linked to assigned tasks, labour productivity and business performance, compatible with sectoral characteristics and market wage levels, and designed to attract and retain high-technology personnel. The State manages pay and bonuses in wholly state-owned enterprises through owner-representative agencies and direct representatives at enterprises; for enterprises with state ownership above 50% the owner-representative agency delegates tasks to the state capital representative to participate and vote at members council, board of directors or shareholders meetings. Enterprises decide recruitment, use of labour, salary scales, wage funds, labour norms, and payment of wages and bonuses in conformity with this Decree, labour law and enterprise charters and business plans, without imposing an upper limit on pay for exceptional experts and high-skilled contributors. The Decree requires separation of remuneration regimes: executives have salaries aggregated with the general wage fund and are linked to business performance, with a cap on the General Director/Director relative to the enterprise average wage (except where employment contract terms apply); members of councils and supervisors have salaries or remuneration based on base salary, added pay linked to scale, complexity and capital utilisation efficiency, or timeworked remuneration for non-full-time members. When objective factors specified in Article 4 directly affect productivity, profit or return on equity, enterprises must exclude those impacts in wage calculations to ensure pay remains tied to actual productivity and business performance. The Decree defines productivity indicators and related calculation principles for implementing these rules.